A bear market is when the price of stocks or cryptocurrencies drops by 20% or more and the slide continues for at least two months. They typically happen every three to four years. In this article, we will talk about the brief story of crypto bear market 2022 and the previous crypto recession. Let's get started.
Cryptocurrency in Previous Recession
Since 2009, 2015 had been one of the few periods of economic instability. After 2014, GDP grew, albeit at incrementally slower rates each quarter, and eventually bottomed out at a 0.1% growth rate in the fourth quarter of 2015.
The crypto asset class was severely pumped during this time. Since the start of 2014, the total market value of all cryptocurrencies has decreased by around 70%, reaching a low in the middle of 2015.
Another period of recent economic instability came in 2018. Similar to 2015, the country's GDP increased, although at a slower rate every quarter, eventually declining to just 1.3% growth. Those who have been investing in cryptocurrencies probable since 2018 are that year brought. The market capitalization of cryptocurrencies plummeted and eventually hit as low as $107 billion, a catastrophic 85% fall, after peaking at almost $750 billion. About $19,000 worth of bitcoin dropped to just over $3,000.
Crypto Bear Market 2022
The crypto bear market of 2022 began in the spring, the first catalyst for this bearish phase being the Terra-Luna ecosystem collapse of May 2022. As the months went by, events such as the FED raising interest rates and the failure of the centralized exchange FTX a few weeks ago further fueled this bear market.
Briefly Story Of Crypto Bear Market 2022, and The Previous Crypto Recession - Hopefully, this article can help you to understand the crypto bear market more.
